Actuarial Science is a discipline that deals with estimating the risk involved in insurance, finance, and other industries and professions. The lives of human beings may not be as comfortable as they are today if there was no insurance.
A company would not start a factory if they knew that they would have nothing left in case the property got destroyed in an earthquake or fire. People would fear to spend money today if retirement programs did not exist. But what is actuarial science and what skills does it involve?
What is Actuarial Science?
The discipline involves the application of Mathematics, Economics, and Statistics to come up with correct decisions. Professionals qualified in this field are referred to as Actuaries.
When you read about actuarial science, it’ll seem like it is only about insurance. However, that is not the case. Actuaries work in other sectors of financial services as well. These include company evaluations, corporate credit management, and tool development.
The general perception maintained about actuarial science students is that they are nerds. And this is somewhat true. In order to be an actuary, an individual needs to pass several examinations and earn an actuarial designation through the various institutes established in different countries. An individual may have to spend around 3 to 10 years to clear all the exams; however, a career can be started by just passing the first two exams. The subsequent exams can be taken while continuing to work as an assistant.
According to the U.S Department of Labor, employment of actuaries will grow faster than any other occupations in 2014. In 2010, job search website CareerCast published a study stating actuary as the topmost desired job.
Opportunities in this field exist at both local as well as international destinations. Not just that, there are several surveys and studies concluding the decision of studying Actuarial Science being a viable career option.
The task of an Actuary is to analyze the future financial prospects of an insurance company. Skills in economics, mathematics, probability, finance, computer science, and statistics are necessary to take decisions and help businesses reduce risks involved. Using their professional skills, they step into the future to analyze the income that will come to the fund and the expense and benefit payments that will have to be made out of the company fund. This way the company is able to meet varying payments in the future.
Is Actuarial Science a good career?
With a plethora of career options and education fields available nowadays, students are confused and do not know how to select college courses. This is why it becomes important for them to analyze the future prospects of every course and understand how fruitful it will be to go ahead with the choice.
The course is continuously ranked as one of the desired studies across the world. An Actuary can work in different fields of insurance including life, health, asset management, general insurance, annuities, pensions, property-casualty, social welfare programmes, and reinsurance.
Actuarial science requires dealing with an unimaginable amount of data. This is why any country would readily hire personnel for the protection of their investments.